Question: Your company is developing a new textbook for FIN 301 and you paid your current FIN 301 instructor $900,000 for his input about the feasibility

 Your company is developing a new textbook for FIN 301 and

Your company is developing a new textbook for FIN 301 and you paid your current FIN 301 instructor $900,000 for his input about the feasibility of such a product. The project would involve initial capital investment of $1,100,000 and installation costs related to the capital expenditures of $700,000. The project would also necessitate an increase in net working capital of $100,000 at the beginning of the project. You can straight line depreciate any depreciable expenses to zero over the three-year life of the project, and you don't expect the capital investment to be sold at the end of the project. Each year, you estimate you will receive $3,000,000 in sales revenue from your awesome textbook. Variable product and selling costs associated with these sales are expected to be 30% of revenue in each of those years. The fixed costs in each of the three years of the 40%. Calculate the total year 0 cash flows associated with the project. $ Calculate the year 1 EBIT. $ Calculate the TOTAL year 1 cash flows associated with the project. $ Calculate the TOTAL year 3 cash flows associated with the project

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